Stocks could sink into a bear-market recession, says technician. Here are five signals on when it likely starts.

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Stocks could sink into a bear-market recession, says technician. Here are five signals on when it likely starts.
France Dernières Nouvelles,France Actualités

U.S. stock indexes are setting fresh yearly highs, but a recessionary bear market may still hit, according to Tyler Richey, co-editor at Sevens Report Research.

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U.S. stock have been touching fresh yearly highs, but a recessionary bear market is still likely to hit, according to Tyler Richey, co-editor at Sevens Report Research.

The Dow Jones Industrial Average DJIA and S&P 500 index SPX on Monday closed at fresh 2023 highs, while ending less than 4.5% off their record levels, according to Dow Jones market data. There are five signs that could help investors identify the onset of a recessionary bear market for stocks, Richey said.

A bull steepener refers to a shift in the yield curve caused by short-term interest rates falling faster than long-term rates, due to the expected Federal Reserve rate cuts to prop up a faltering economy.

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